Determine the payback for both projects

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Reference no: EM133113261

Question - Kaiser Oakland Practice expects Projects 1 and 2 to generate the following cash flows:

Project 1 (in '000s) Givens

Years

0

1

2

3

4

5

Initial investment

($3,800)

 

 

 

 

 

Net operating cash flows

 

$500

$700

$900

$1,700

$3,000

Project 2 (in '000s) Givens

Years

0

1

2

3

4

5

Initial investment

($6,000)

 

 

 

 

 

Net operating cash flows

 

$1,800

$1,500

$1,400

$1,300

$1,000

Required -

a. Determine the payback for both projects.

b. Determine the IRR.

c. Determine the NPV at a cost of capital of 12 percent.

Reference no: EM133113261

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